IBC
Non-Production Of Guarantee Deed Not Fatal Where Loan Agreement Establishes Personal Guarantor's Liability: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Chennai has recently held that insolvency proceedings against a personal guarantor cannot be invalidated solely because a separate deed of guarantee has not been placed on record. The tribunal ruled that where the guarantor's status and liability are evident from the loan agreement and other documents, the proceedings can indeed continue. A bench of Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain delivered the ruling...
Resolution Professional Cannot Be Replaced For Disagreement With Recommendation: NCLT Jaipur
The National Company Law Tribunal at Jaipur on 19 June held that a Resolution Professional appointed in personal guarantor insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 cannot be replaced merely on account of a party's dissatisfaction with the professional's recommendation. Judicial Member Reeta Kohli and Technical Member Kavita Bhatnagar dismissed an application filed by Islamuddin Kagzi, personal guarantor to Sanga Builders Private Limited, who sought substitution of...
Secured Creditor Cannot Enforce Security After Statutory Timeline Under Regulation 21A: NCLT Mumbai
The Mumbai Bench of the National Company Law Tribunal (NCLT) on 10 June held that compliance with the timelines prescribed under Regulation 21A of the IBBI (Liquidation Process) Regulations is mandatory and that a secured creditor cannot be permitted to realise its security interest after failing to exercise its option within the stipulated period. Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer dismissed an application filed by Vishweshwar Sahakari Bank Ltd, which...
LiveLawBiz IBC Weekly Digest: June 15 - June 20, 2026
SUPREME COURT Supreme Court Issues Notice On Challenge To Gujarat HC Ruling Against Transfer Of Essar Steel Cases To Mumbai NCLT Case Title : UNION OF INDIA AND ANR. Versus ARCELORMITTAL NIPPON STEEL INDIA LIMITED FORMERLY KNOWN AS ESSAR STEEL INDIA Case Number : Diary No. 24062-2026The Supreme Court on Monday issued notice on the Union government's challenge to a Gujarat High Court judgment concerning the transfer of Essar Steel-related proceedings from the National...
Project Completion, Sale Of Flats Do Not Defeat Insolvency Plea Against Real Estate Developer: NCLT Mumbai
The National Company Law Tribunal (NCLT) in Mumbai has recently held that the substantial completion of a real estate project and the sale of flats and shops in it do not bar insolvency proceedings by a lender. The tribunal observed that such circumstances do not extinguish an unpaid financial debt. A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar admitted Union Bank of India's insolvency plea against Rashmi Realty Builders Pvt Ltd over a default of more than ₹60...
Orissa High Court Quashes Criminal Proceedings Against Ferro Alloys Over Pre-CIRP Environmental Law Violations
The Orissa High Court has recently quashed criminal proceedings against Ferro Alloys Corporation Ltd over alleged environmental law violations. It held that continuation of the prosecution was not sustainable as the violations happened before the insolvency resoulution. Justice Dr. Sanjeeb K. Panigrahi also noted that offences under Section 15 of the Environment (Protection) Act, 1986 have since been decriminalised. They have been replaced with a regime of civil penalties. “In the present...
Insolvency Professional Can Continue Existing Assignments After Attaining Age 70: NCLAT
The National Company Law Appellate Tribunal (NCLAT) at Chennai has held that an insolvency professional can continue handling assignments already entrusted to him even after turning 70 years of age, the upper age limit for insolvency professionals, if the Authorisation for Assignment (AFA) expires during the course of those assignments. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed: “...where the authorisation of assignment, (AFA)...
NCLAT Upholds NCLT Order Asking CoC To Consider Prior Judicial Observations On RP Before Appointment
The National Company Law Appellate Tribunal (NCLAT) in Chennai has refused to interfere with an order directing the Committee of Creditors (CoC) to consider adverse observations made against an insolvency professional in an earlier proceeding. The observations were to be considered before proceeding with approval of his appointment as Resolution Professional in two corporate insolvency cases. A bench of Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain observed that the...
Going Concern Sale Does Not Transfer Subsidiaries Outside Liquidation Estate: NCLAT
The National Company Law Appellate Tribunal (NCLAT) in Chennai has recently held that a purchaser of a corporate debtor sold as a going concern in liquidation cannot claim rights over its subsidiaries, joint ventures, or associate entities merely because they belong to the same corporate group. The tribunal ruled that such assets fall outside the liquidation estate and do not automatically pass to the successful bidder. A bench of Judicial Member Justice Sharad Kumar Sharma and Technical...
NCLT Bengaluru Holds Bank Cannot Retain Title Deeds After Full Payment of Resolution Plan Dues
The National Company Law Tribunal (NCLT) at Bengaluru has held that a bank that has received the full amount payable under an approved resolution plan cannot continue withholding a corporate debtor's title deeds and security documents. The tribunal held that the pendency of an appeal concerning an interest dispute is not, by itself, a valid reason to retain those documents. A bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada directed Kotak Mahindra Bank...
Insolvency Against Personal Guarantor Maintainable Without CIRP Against Borrower: NCLT Kolkata
The National Company Law Tribunal (NCLT) at Kolkata has reiterated that insolvency proceedings against a personal guarantor can be maintained even if no insolvency proceedings have been initiated against the principal borrower. The ruling came while admitting Indian Bank's insolvency application against Santosh Jhawar, personal guarantor to Burgundy Life Style Pvt Ltd. A bench of Judicial Member Bidisha Banerjee and Technical Member Rekha Kantilal Shah relied on the National Company Law...
CoC Cannot Claim Net Gain From Subsequent Land Acquisition After Approving Resolution Plan: NCLT Mumbai
The National Company Law tribunal (NCLT) at Mumbai has held that creditors cannot claim the benefit of a subsequent increase in the value of a corporate debtor's assets after approving a resolution plan. The tribunal ruled that the gain cannot be claimed merely because the increase was not contemplated when the plan was approved. A bench of Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan observed that once a resolution plan has been approved by the Committee of Creditors...